Bret Skipper
Zionsville, Indiana 46077
Bret Skipper brings a lifetime of experience, insight, and heart to the families and federal employees he serves. Raised in the insurance industry alongside his father, Bret began his journey in 1980, learning early what it means to provide protection, peace of mind, and long-term security.
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Bret Skipper brings a lifetime of experience, insight, and heart to the families and federal employees he serves. Raised in the insurance industry alongside his father, Bret began his journey in 1980, learning early what it means to provide protection, peace of mind, and long-term security.
After gaining foundational experience, Bret stepped into the world of entrepreneurship, where he honed the practical skills that now make him such a strong advocate for his clients. As founder of Rancho Alegre, he built a nationally recognized landscape nursery and purebred cattle operation from the ground up — managing international sales, national tree distribution, and a creative design and installation team. That hands-on business experience taught Bret how to listen, lead, and build long-term value — skills he brings into every retirement conversation today.
Later, he launched Rosebrook Farms, a high-end custom landscaping firm, and became a fan favorite on the nationally syndicated reality TV show Junked. For seven years, Bret transformed debris into unforgettable outdoor spaces — proving that with the right vision, any challenge can turn into something meaningful.
In 2011, Bret returned full-time to his roots in the insurance world, this time with a renewed purpose: helping individuals and families create tax-free retirement income they can never outlive. He co-authored the book Crash Proof Wealth, offering real-world strategies using indexed annuities and life insurance to build wealth, reduce taxes, and protect what matters most.
Today, as part of The Benefit Coordinators, Bret specializes in working with federal and postal employees to simplify the complexities of their benefits — from FERS and FEGLI to TSP and beyond. He helps clients understand what’s really working for them (and what’s not), so they can create a retirement plan that actually fits their life and goals.
Outside the office, Bret stays active — lifting weights, walking 15,000 steps a day, and continuing his love for landscaping on the family farm. He and his wife Mary are proud parents of three grown children and are enjoying their next chapter together as empty nesters.
Whether you’re starting your federal career or thinking seriously about retirement, Bret Skipper is the kind of benefit coordinator you want in your corner — someone who’s walked the walk, built lasting success, and knows how to turn complex problems into simple, powerful solutions.
Maximum Social Security Contribution
As a federal or postal employee, have you ever wondered how much of your salary goes toward Social Security each year? Understanding your maximum Social Security contribution is essential for effective financial planning. Without knowing where your money is going, you could be missing out on opportunities to optimize your earnings and retirement benefits.
Why Social Security Matters for Federal and Postal Employees
Social Security provides a financial safety net for millions of Americans, including federal and postal workers. While some federal employees receive pensions through FERS or CSRS, Social Security benefits can still play a significant role in retirement planning.
Understanding how Social Security fits into your overall retirement strategy can help you maximize your financial security. Whether you’re at the beginning of your career or nearing retirement, knowing how Social Security contributions work ensures you’re making the most of your earnings.
What Is the Social Security Tax?
Social Security is a federal program that provides retirement, disability, and survivor benefits to eligible Americans. It’s primarily funded through payroll taxes under the Federal Insurance Contributions Act (FICA).
For employees, the Social Security tax rate is 6.2% of their gross wages, matched by an additional 6.2% from employers, totaling 12.4%. However, there is a cap on how much of your income is subject to this tax.
How Do Social Security Payroll Taxes Work?
Each paycheck, a portion of your earnings goes toward funding Social Security benefits. This tax applies only to income up to a certain threshold, known as the maximum taxable earnings limit. Once you reach this limit, Social Security deductions stop for the rest of the year.
The Social Security system ensures that those who contribute receive benefits in retirement. However, it’s important to understand the limits and how they impact your financial planning.
What Is the Maximum Taxable Earnings Limit for 2025?
Each year, the Social Security Administration (SSA) sets a limit on how much of a person’s income is subject to Social Security payroll taxes. This cap ensures that higher earners don’t contribute indefinitely while still receiving proportional benefits.
For 2025, the maximum taxable earnings have been set at $176,100. This means that any income above this threshold isn’t subject to the 6.2% Social Security tax. However, you’ll still pay Medicare taxes on all wages earned.
Understanding the maximum Social Security contribution is especially important when you’re projecting your retirement income or tracking your paycheck deductions.
How Much Will You Pay in Social Security Taxes in 2025?
To determine your maximum Social Security contribution for 2025:
- Identify the Tax Rate: The employee’s portion is 6.2%.
- Apply It to the Wage Base: Multiply 6.2% by $176,100.
Calculation:
0.062 × $176,100 = $10,918.20
This means the most you’ll contribute to Social Security payroll taxes in 2025 is $10,918.20. Your employer will match this amount, bringing the total contribution to $21,836.40.
Federal and postal workers earning close to or above the limit should be aware of this maximum Social Security contribution to better manage their withholdings and plan retirement savings.
Social Security vs. Medicare Taxes: What’s the Difference?
Unlike Social Security, Medicare taxes don’t have a wage base limit. Whether you earn $50,000 or $500,000, Medicare tax applies to all your wages.
Medicare Tax Breakdown:
- 1.45% on all earnings.
- Additional Medicare Tax of 0.9% applies to individuals earning over $200,000.
- Employers do not match the additional Medicare tax.
This means that even after you reach the Social Security tax limit, Medicare taxes will still apply to all additional income.
What Federal and Postal Workers Need to Know
FERS Employees and Social Security Contributions
If you’re a Federal Employees Retirement System (FERS) participant, you’re required to pay into Social Security just like private-sector workers. That means the $10,918.20 cap applies to you in 2025. On top of this, you’re also contributing to your FERS pension and Thrift Savings Plan (TSP).
CSRS Employees and Social Security Taxes
If you’re part of the Civil Service Retirement System (CSRS), you typically do not pay into Social Security unless you had previous employment income covered by Social Security. Instead, you contribute a higher percentage to your CSRS pension.
Why Does the Social Security Taxable Earnings Limit Change Each Year?
The Social Security taxable earnings limit is adjusted annually to keep up with inflation and wage growth. This adjustment ensures that the Social Security program remains financially stable.
Recent Social Security Earnings Limits:
- 2023: $160,200
- 2024: $168,600
- 2025: $176,100
These changes are based on the average wage index, which reflects overall wage increases in the U.S. workforce.
What Happens After You Reach the Maximum Amount?
Once you hit the maximum taxable earnings limit of $176,100, your Social Security deductions stop for the rest of the year. However, your paycheck will still reflect deductions for:
- Medicare tax (1.45%)
- Additional Medicare tax (0.9%) for high earners
- Federal and state income taxes
- FERS or CSRS retirement contributions
This means you could see a slight increase in your take-home pay once you reach the maximum amount.
How This Affects Your Social Security Benefits
Your Social Security benefits are calculated based on your highest 35 years of earnings. Since the SSA uses the contribution and benefit base to determine benefits, the more you earn (up to the limit), the higher your future Social Security check will be.
For those planning early or full retirement, knowing the impact of your maximum taxable earnings is critical. Your full retirement age (FRA)—whether it’s 66 or 67—will determine when you can start collecting Social Security benefits without penalty.
The Importance of Planning for Retirement
With limits on how much you contribute to Social Security, it’s important to consider alternative savings strategies to supplement your retirement income. Your Thrift Savings Plan (TSP) and other retirement savings options can help ensure you have a comfortable retirement.
Some federal workers advocate for legislative changes to adjust the cap on Social Security payroll taxes, often under the lens of the Fairness Act, arguing for long-term sustainability and higher benefit thresholds for all Social Security recipients.
Stay Informed About Changes in Social Security
Federal and postal employees should stay updated on Social Security adjustments, as new legislation and changes can impact their retirement benefits. Keep track of updates by visiting ssa.gov and speaking with a federal benefits expert.
Your Next Steps
Need personalized guidance on maximizing your federal retirement benefits? The Benefit Coordinators is here to help. Visit www.thebenefitcoordinators.com for expert insights and one-on-one consultations. Let’s make your retirement strategy work for you.
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By staying informed and proactive, you can secure your financial future with confidence.